Account Equity & PnL Calculation

Static equity: the account balance, in other words, the digital assets in this account, including frozen margin.

USDT static equity = Current week initial static equity + Current week transfer_in amount – Current week transfer_out amount + Current week premium income – Current week premium expense – Current week transaction fees + net delivery income - delivery fees

Static equity of the underlying asset= Current week initial static equity + net deposits + net delivery income- delivery fees

 

Options Market Value

The total value of all positions currently held by the user, where for long positions, the value is positive and for short positions, the value is negative. The market value of current positons is calculated based on the latest price.

Options Value = Latest option price *Positions quantity (cont) * Face value   

For long positions, the options market value is positive, while for short positions, the market value is negative.

 

Account Equity

The options account equity is divided into “account equity quoted in the underlying asset” and “account equity quoted in USDT”, and is the total equity of the options account for each token. The calculation formula is as below:

Account Equity quoted in USDT = Static equity + Option market value

Account equity quoted in underlying asset = Static equity

 

Available Asset

Available assets are the assets in options account that can be used for trading. It is a certain amount of margin that users transfer into the options account, which includes the net premium income and expense originating from options trading.

Available Assets = Current week initial account equity + Current week net deposits + Net premium income and expense – Current week transaction fees + Net delivery income – Performance margin – Frozen margin – Frozen premium – Frozen transaction fees

 

Unrealized PnL

Unrealized PnL is the profit and loss of the positions currently held by the user, and it is the sum of all open positions of the same-type options contract. Unrealized PnL will change with the latest price.

  • Buy call or put options to hold long positions, then:

Unrealized PnL of long positions = (Options latest price - Open price) * Positions quantity* Face value;

  • Sell call or put options to hold short positions, then:

Unrealized PnL of short positions = (Open price – Options latest price) * Positions quantity* Face value;

The unrealized PnL is calculated in USDT. It is the sum of the unrealized profit and loss that priced in USDT for each swaps (BTC, ETH, etc.)

Example: Alex holds 10 conts BTC call options (the face value of each contract is 0.001 BTC) with open price 5000 BTC/USDT. Assume the latest price of the options is 8000 BTC/USD, then the current unrealized PnL= (8000-5000) * 10 * 0.001 = 30 USDT.

 

Realized PnL

Realized PnL refers to the profit and loss on a completed trade, which includes any and all transaction fees associated with the transaction and the PnL from closing positions from the last delivery.

  • For buyers who sell call or put options to close positions:

Realized PnL of long positions = (Close price - Open price) * Quantity closed * Face value;

  • For sellers who buy call or put options to close positions:

Realized PnL of short positions = (Open price- Close price) * Quantity closed * Face value.

The realized PnL is calculated in USDT. It is the sum of the realized profit and loss that priced in USDT for each swaps.

 

Settlement of Realized PnL

Weekly options will be exercised and delivered at 16:00 on every Friday, the realized PnL (including delivery profits) will be also settled at this time.

Realized PnL settled in USDT= PnL from closing positions + Transaction fees + Delivery profit for put options + Transaction fees for put options - Open price for long positions of call options* Delivery quantity (cont)* Face value - Open price for long positions of put options* Delivery quantity (cont)* Face value + Open price for short positions of call options* Delivery quantity (cont)* Face value + Open price for short positions of put options* Delivery quantity (cont)* Face value

Realized PnL settled in the underlying asset = Delivery profit of call options + Transaction fees of call options

Example:

Assume Alex is an options seller who holds 20 conts BTC put options (the face value is 0.001 BTC) with open price at 7000 BTC/USDT. If Alex closes positions at the latest price 6000 BTC/USDT, his realized PnL= (7000-6000) * 20 * 0.001 = 20 USDT

 

 

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